Tracking the crypto asset market

We have launched Cryptogram, an India-focused free weekly newsletter on blockchain tech, global crypto markets, and Web 3.0 technologies which promise to change our future. If you would like to subscribe to this newsletter, click here. You can read our past editions here.

The global financial market has been underwater for the past couple of days with Europe’s surging gas prices at the epicenter of worries. Heatwaves accompanied by natural gas shortages are expected to drive gas prices higher this summer. Europe is most affected though gas prices are rallying in the US and Asia too. The DXY index has been growing as investors are flocking to US dollar reserves amid fears of global recession. This in turn had reverberations on all other markets including on crypto assets. In today’s article, we will briefly look at the price actions of major crypto assets along with short-term outlook for Bitcoin (BTC).

Bitcoin struggles 

BTC slipped below the 200-week moving average (WMA) in the middle of last week quickly receding 10% in just a day. Losing 200 WMA at $23,120, which was considered as a lifeline support by bulls, has dialed up negative sentiment among the crypto investors. BTC closed last week at $21,500 after reversing at $20,836 intra-day. 

Despite losing critical support, holding above $20,000 is seen as a sign of strength in this bearish climate. The first short-term resistance will come at $22,600, 20-day exponential moving average (EMA) and subsequently at $23,000. Horizontal level at $20,836 continues to act as major support for current trajectory. BTC is currently trading at $21,400 with a 0.5% gain in the last 24 hours. 

Ethereum follows suit

Ethereum (ETH) followed the footsteps of BTC last week losing 12% on a day before locally reversing near $1,500. ETH, after experiencing a 128% rally into the Merge upgrade from June lows, it got steeply rejected from the 20-week moving average at $2,000. ETH’s inability to show strength even when the Merge upgrade is scheduled for mid-September is observed as a telling sign that markets are going to bleed. 

ETH’s first major resistance comes in at $1,642, 50-day EMA and subsequently at $1,712. Losing steam on this recovery might send ETH back to the $1,300 region. Despite market lull, if ETH manages to transition from proof of work to proof of stake mechanism successfully, an eye-catching price rally might be on the horizon again. 

Altcoins bleed

Most top 20 crypto assets excluding the dollar-pegged stablecoins have lost more than 10% in the last seven days except for Tron (TRX), BNB (BNB) and XRP (XRP). Dogecoin (DOGE) bled most with more than 20% in its pockets as investors shunned away from high-risk low utility assets. The only standout crypto asset in the top 100 list was EOS (EOS) which is trading at $1.34. EOS is an open-source blockchain platform that prioritizes high performance, flexibility, security, and developer experience. EOS surged by 34% over the last week with trade volumes going through the roof as EOS Global is currently partnering up with dozens of blockchain projects which need fast transactions and a flexible decentralized application (dApp) platform.

Short-term outlook for BTC

With the energy crisis looming and 10-year treasury yield climbing 3% for the first time in a month, all point towards a looming recession as investors are betting on a hawkish tone from the US Fed on Friday. Quantitative tightening is likely to end bad for Bitcoin’s revival in the short-term. Investors are advised to tread the crypto markets cautiously as we are currently in a momentum trade (entering a trade as it is picking steam). Momentum trade doesn’t follow any strict technicals and is subject to volatility from external factors.

Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin.

Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.